Indian Stock Market Gears Up for Gap-Up Opening Amidst Positive Global Cues

The Indian stock market is poised for a strong opening on Thursday, January 22, 2026, buoyed by positive global market trends and easing geopolitical tensions. The Gift Nifty, a key indicator of market sentiment, is trading around the 25,320 level, a premium of nearly 142 points from the Nifty futures' previous close, signaling a gap-up start for the Indian indices.

1. Gift Nifty Signals Strong Opening: The Gift Nifty's premium indicates a bullish sentiment, suggesting that Indian benchmark indices, the Sensex and Nifty 50, are likely to open higher.

2. Easing Geopolitical Tensions: Market sentiment has improved significantly after President Trump softened his stance on imposing tariffs on European countries linked to Greenland. This de-escalation of trade tensions has boosted investor confidence.

3. Wall Street Rally: The US stock market rallied overnight, with the S&P 500 posting its biggest one-day percentage gain in two months. The Dow Jones Industrial Average and the Nasdaq Composite also registered substantial increases.

4. Asian Markets Mirror Gains: Asian markets are trading higher, mirroring the positive sentiment from the US markets as concerns over trade wars receded. Japan's Nikkei 225 rose 1.07%, while the Topix gained 0.79%. South Korea's Kospi jumped 1.62%.

5. Previous Day's Market Performance: On Wednesday, January 21, the Indian stock market ended lower for the third consecutive session amid heightened geopolitical uncertainties and relentless Foreign Institutional Investor (FII) selling. The Sensex declined 270.84 points, or 0.33%, to close at 81,909.63, while the Nifty 50 settled 75.00 points, or 0.30%, lower at 25,157.50.

6. Expert Views: According to Ajit Mishra, SVP, Research, Religare Broking Ltd., a sharp depreciation in the Indian rupee and continued foreign institutional selling dampened market sentiment.

7. Global Market Cues: The positive cues from global markets, particularly the US and Asia, are expected to drive the Indian market higher.

8. Greenland Deal Impact: Trump's backing down on threats to impose tariffs on European countries over Greenland has instilled confidence in investors.

9. Nasdaq's Advance: The Nasdaq advanced 1.18%, providing further impetus to the positive market sentiment. Tech stocks provided substantial support.

10. Gold Prices: Gold prices surged to near record highs amid trade tensions. Spot gold is trading near $4,700 per ounce. Silver also saw a surge, trading above $83 per ounce.